1. (a) Reporting requirements.

   1. (1) A used automotive parts recycler (recycler), as defined in Occupations Code §2309.002, that purchases a motor vehicle without a title, in accordance with Transportation Code, §501.098(a), shall determine if the motor vehicle is reported stolen and if the motor vehicle is the subject of any recorded security interests or liens by completing and submitting the form described in subsection (b) of this section to the department within the time provided under Transportation Code, §501.098(c) and §501.098(g).
   2. (2) A recycler must separately report the information specified under Transportation Code, §501.098(c) to the National Motor Vehicle Title Information System.

2. (b) Information on form. A recycler shall submit a form containing the following information:

   1. (1) name, mailing address, email address and phone number of the recycler;
   2. (2) the vehicle identification number for the motor vehicle;
   3. (3) the date the motor vehicle was obtained;
   4. (4) the name of the individual or entity from whom the motor vehicle was obtained;

   5. (5) A statement that the vehicle:

      1. (A) is at least 13 years old,
      2. (B) is purchased solely for parts, dismantling, or scrap, and
      3. (C) has not been registered for at least seven years; and
   6. (6) the signature of the recycler or the recycler's authorized agent.
3. (c) Submittal of form. The form shall be submitted to the department in person at one of the department's regional offices or electronically following the procedures set out on the department's website.

4. (d) Department response.

   1. (1) Upon receipt of a completed and signed form under subsection (b) of this section, the department shall:

      1. (A) notify the recycler, in person or via the email address specified on the form, within the time specified under Transportation Code, §501.098(d), whether the motor vehicle has been reported stolen; and
      2. (B) notify the recycler, in person or via the email address specified on the form, whether the motor vehicle is the subject of a recorded security interest or lien in the department's Registration and Title System. If the vehicle has a recorded lien or security interest, the recycler may obtain the contact information of the holder of that recorded lien or security interest from the department by submitting a request in accordance with §217.123 of this title (relating to Access to Motor Vehicle Records).

   2. (2) If the motor vehicle has a motor vehicle record in the department's Registration and Title System, the department shall:

      1. (A) add a notation to the motor vehicle record that the motor vehicle has been dismantled, scrapped, or destroyed; and
      2. (B) cancel the title issued by the department for the motor vehicle.

5. (e) Vehicles retrieved from recycler. The department shall reinstate the title and remove the notation in the department's records specified under subsection (d)(2) of this section and Transportation Code, §501.098(f)(1) at the request of a lienholder or last registered owner of a vehicle that is retrieved from a recycler under Transportation Code, §501.098(j). The request must include:

   1. (1) a receipt from the recycler transferring the vehicle to the lienholder or last registered owner that includes the vehicle identification number, year and make; and
   2. (2) valid proof of identification as provided in §217.7 of this title (relating to Replacement of Title).

6. (f) Records.

   1. (1) A recycler shall collect and record the information specified in Transportation Code, §501.098(b)(1)-(9) on a form available on the department's website and maintain that form with the identification documents under Transportation Code, §501.098(b)(10) and the department's response under subsection (d) of this section.
   2. (2) The records may be maintained in an electronic format.

Source Note:The provisions of this §217.87 adopted to be effective January 1, 2026, 50 TexReg 8626.